Icici Bank (ICBA) Q2 2027 Earnings Report

The call was predominantly positive, with strong year-on-year growth in profit, deposits, loans, fee income, capital, and several subsidiary businesses, alongside improving net NPA metrics and substantial provisioning buffers. The main challenges were near-term NIM moderation, a declining credit card portfolio, higher corporate and business banking NPA additions, a treasury loss, weaker dividend income, higher operating expenses, and a higher insurance combined ratio. Management nevertheless characterized loan demand, credit quality, capital, and the broader franchise as strong.

Management said there was “no particular view on the mix between retail and corporate going forward,” with the franchise “fully open and capable of delivering very robust levels of growth,” while credit cost was expected to be “up to 50 basis points.” The full impact of the FCNR (B) deposits raised during Q2 and the increased overseas book would be seen in Q3, with “a further moderation in margins,” partly offset by the rate hike, while “from Q4” margins were expected “to come back in a pretty healthy way,” even assuming “there are no further rate hikes.” Excess liquidity was expected to be deployed “over the next 2 quarters,” and the bank expected jewel-loan volumes “to pick up”; an update on agricultural priority-sector standard asset provisioning was expected “over the next 2 quarters.”